Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is a Federal Law (11USC) created for the sole purpose of giving debt relief to individuals who need it. Congress recognized that many people many people will run into financial difficulty throughout their life time so it created bankruptcy laws to protect them from their creditors. Congress understood that there will be many people who want to repay their creditors, but due to unforeseen hardships such as job losses, divorces and medical bills, they simply cannot repay their creditors.

In short, filing Chapter 7, with only a few exceptions, may allow you wipe away (discharge) all of your unsecured debt such as credit cards, unsecured loans, medical bills, broken leases, etc. without having to repay any of it. The creditors in your Chapter 7 bankruptcy are automatically stayed (subject to a restraining order) from calling you, harassing you, writing you nasty letters, suing you, or, basically, doing anything from collecting that money. Once you receive your discharge order (order that states that all of your debts are formally wiped away), this restraining order becomes permanent and your creditors are forever prohibited from contacting you. You need an experienced bankruptcy attorney to walk you through the process of filing chapter 7.